Image:MOTIE–
In a historic move, the Ministry of Trade, Industry and Energy (MOTIE) announced on October 22 the culmination of significant agreements and memorandums of understanding (MOUs) between energy institutions, corporations, and MOTIE officials from both Korea and Saudi Arabia. This momentous occasion took place during the Korea-Saudi summit meeting in Riyadh, symbolizing a pivotal step towards mutual cooperation in the realm of clean energy.
Korea-Saudi Hydrogen Oasis Cooperation Initiative Takes Center Stage
Minister Bang Moon Kyu of MOTIE and Saudi Energy Minister Prince Abdulaziz bin Salman inked the groundbreaking “Korea-Saudi Hydrogen Oasis Cooperation Initiative” MOU on behalf of their respective governments. This initiative lays the foundation for expansive collaboration in the field of clean hydrogen technologies. Saudi Arabia, a nation endowed with abundant conventional energy resources, is strategically increasing its investments in clean hydrogen industries to spearhead future energy development and achieve carbon neutrality.
Korea and Saudi Arabia have embarked on a cooperative journey, mapping out a comprehensive roadmap that encompasses the entire hydrogen ecosystem, from production to distribution and utilization. This ambitious endeavor is underpinned by their complementary strengths and a shared vision for a sustainable energy future.
Multi-Billion Dollar Blue Ammonia Project Takes Shape
As a tangible manifestation of this cooperation, Korean giants including Korea Electric Power Corporation (KEPCO), POSCO Holdings, and Lotte Chem, alongside others, formalized a letter of intent (LOI) for a monumental blue ammonia project valued at a staggering USD 15.5 billion. This transformative venture is set to unfold in the Ras Al-Khair region, in collaboration with Saudi’s energy titan, Aramco.
Additionally, HD Hyundai Oilbank and Aramco solidified their commitment to a “Clean Hydrogen Energy Project Cooperation MOU”. Further, KEPCO partnered with Saudi’s Al Jomaih Energy and Water Co. to forge a pivotal hydrogen project deal, underscoring the depth of their collaborative efforts.
Strategic Agreements Reshape Energy Landscape
In parallel, Korea National Oil Corporation (KNOC) and Aramco sealed a pivotal crude oil reserve agreement. Under this agreement, Aramco will be storing crucial crude oil supplies in the Ulsan Oil Hub, affording Korea a preferential purchase right to 5.3 million barrels of Aramco’s crude oil in times of supply emergencies.
Moreover, HD Hyundai Electric and Saudi’s esteemed investment firm, AlGihaz, formalized an MOU on substation bid cooperation. Simultaneously, Korea’s esteemed power boiler and heat exchanger manufacturer, BHI, joined hands with Saudi’s Rezayat Group to forge a strategic partnership in power plant equipment and materials supply.
The Korean government is poised to propel the Korea-Saudi relations beyond conventional energy paradigms, steering towards a visionary era of clean hydrogen cooperation, building upon the successes of this economic summit diplomacy.
